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WEBSTKR,  N  y.  US80 

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CIHM/ICMH 

Microfiche 

Series. 


CIHIVI/ICMH 
Collection  de 
microfiches. 


Canadian  Institute  for  Historical  Micror^productions  /  Institut  Canadian  de  microreproductions  historiques 


1981 


Technical  and  Bibliographic  Notes/Notes  techniques  et  bibliographiques 


The  Institute  has  attempted  to  obtain  the  best 
original  copy  available  for  filming.  Features  of  this 
copy  which  may  be  bibliographically  unique, 
which  may  alter  any  of  the  images  in  the 
reproduction,  or  which  may  significantly  change 
the  usual  method  of  filmfng,  are  checked  below. 


D 


Coloured  covers/ 
Couverture  de  couleur 


!      I    Covers  damaged/ 


Couvertuie  endommag^e 


L'Institut  a  microfilm^  le  meilleur  exemplaire 
qu'il  lui  a  dt6  possible  de  se  procurer.  Les  details 
de  cet  exemplaire  qui  sont  peut-etre  uniques  du 
point  de  vue  bibliographique,  qui  peuvent  modifier 
une  image  reproduice,  ou  qui  peuvent  exiger  une 
modification  dans  la  m^thode  normale  de  filmage 
sont  indiqu6s  ci-dessous. 


□    Coloured  pages/ 
Pages  de  couleur 

□    Pages  damaged/ 
Pages  endommag6es 


[—1    Cov 
1 I    Cou 


Covers  restored  and/or  laminated/ 


n 


n 


verture  restaurde  et/ou  pellicul^e 


Cover  title  missing/ 

Le  titre  de  couverture  manque 


I      I    Coloured  maps/ 


Cartes  gdographiques  en  couleur 


En  Coloured  ink  (i.e.  other  than  blue  or  black)/ 

J  Encre  de  couleur  (i.e.  autre  que  bleue  ou  noire) 

E]  Coloured  plates  and/or  illustrations/ 

i  Planches  et/ou  illustrations  en  couleur 


I      I    Bound  with  other  material/ 
1 I    Reli6  avec  d'autres  documents 


Tight  binding  may  cause  shadows  or  distortion 
along  interior  margin/ 

La  reliure  serree  peut  causer  de  I'ombre  ou  de  la 
distortion  le  long  de  la  marge  int^rieure 

Blank  leaves  added  during  restoration  may 
appear  withm  the  text.  Whenever  possible,  these 
have  beer  omitted  from  filming/ 
II  se  peuT  que  certaines  pages  blanches  ajoutdes 
lors  d'une  restauration  apparaissent  dans  le  texte, 
mais,  lorsque  cela  dtait  possibia,  ces  pages  n'ont 
pas  6t6  film^es. 


^ 


Pages  restored  and/c  laminated/ 
Pages  restaur6es  et/ou  pellicul^es 


EPageo  discoloured,  stained  or  foxed/ 
Pages  d^coloi^es,  tachet^es  cu  piquees 

□Pages  detached/ 
Pages  detach^es 

□  ■  Showthrough/ 
Transparence 

□    Quality  of  print  varies/ 
Quality  in^gale  de  I'impression 

□    Includes  supplementary  material/ 
Comprend  du  materiel  supplementaire 

□    Only  edition  available/ 
Seule  Edition  disponible 


D 


Pages  whoMy  or  partially  obscured  by  errata 
slips,  tissues,  etc.,  have  beer  refilmcd  to 
ensure  the  best  possible  image/ 
Les  pages  totalement  ou  partiellement 
obscurcies  par  un  feuillet  d'errata,  une  pelure, 
etc.,  ont  6t6  film^es  d  nouveau  de  facon  i 
obtenir  la  meilleure  image  possible. 


D 


Additional  comments:/ 
Commentaires  suppl6mentaires; 


This  item  is  filmed  at  the  reduction  ratio  checked  below/ 

Ce  document  est  film6  au  taux  de  reduction  indiqu6  ci-dessous. 

10X  14X  18X  22X 


: 


/ 


12X 


16X 


20X 


26X 


30X 


24X 


28X 


32X 


The  copy  filmed  here  has  been  reproduced  thanks 
to  the  generosity  of: 

Library  of  the  Public 
Archives  of  Canada 


L'exemptaire  film6  fut  reproduit  grSce  d  la 
g6n6rosit6  de: 

La  bibliothdque  des  Archives 
publiques  di<  Canada 


The  images  appearing  here  are  the  best  quality 
possible  considering  the  condition  and  legibility 
of  the  original  copy  and  in  keeping  with  the 
filming  contract  specifications. 


Original  copies''  in  printed  paper  covers  are  filmed 
beginning  with  the  front  cover  and  ending  on 
the  last  page  with  a  printed  or  illustrated  impres- 
sion, or  the  back  cover  when  appropriate.  All 
other  original  copies  are  filmed  beginning  on  the 
first  page  with  a  printed  or  illustrated  impres- 
sion, and  ending  on  the  last  page  with  a  printed 
or  illustrated  impression. 


The  last  recorded  frame  on  each  microfiche 
shall  contain  the  symbol  — ^-  (meaning  "CON- 
TINUED"), or  the  symbol  V  (meaning  "END"), 
whichever  applies. 


Les  images  suivantes  ont  6t6  reproduites  avec  le 
plus  grand  scin,  compte  tenu  de  la  condition  et 
de  la  nettetd  de  I'exemplaire  film6,  et  en 
conformity  avec  les  conditions  du  contrat  de 
filmage. 

Les  exemplaires  originaux  dont  la  couverture  en 
papier  est  imprimde  sont  filmds  en  commenpant 
par  le  premier  plat  ot  en  terminant  soit  par  ia 
dernidre  page  qui  comporte  une  empreinte 
d'impression  ou  d'illustration,  soit  par  le  second 
plat,  selon  le  cas.  Tous  les  autres  exemplaires 
originaux  sont  filmds  en  commenpant  par  la 
premidre  page  qui  comporte  une  empreinte 
d'impression  ou  d'iliustration  et  en  terminant  par 
la  derni^re  page  qui  comporte  une  telle 
empreinte. 

Un  des  symboles  suivants  apparaitra  sur  la 
dernidre  image  de  cheque  microfiche,  selon  le 
cas:  le  symbole  — ♦►  signifie  "A  SUIVRE ',  le 
symbole  V  signifie  "FIN". 


Maps,  plates,  cherts,  etc.,  may  be  filmed  at 
'liifferent  reduction  ratios.  Those  too  large  to  be 
entirely  included  in  omy  exposure  are  filmed 
beginning  in  the  upper  left  hand  corner,  left  to 
r'ght  and  top  to  bottom,  as  many  frames  as 
required.  The  following  diagrams  illustrate  the 
method: 


Les  cartes,  planches,  tableaux,  etc.,  peuvent  §tre 
filmds  d  des  taux  de  reduction  diff^rents. 
Lorsque  le  document  est  trop  grand  pour  Stre 
reproduit  en  un  seui  clich6,  il  est  film6  d  partir 
de  Tangle  sup^rieur  gauche,  de  gauche  d  droite, 
et  de  haut  en  bas,  en  prenant  le  nombre 
d'images  n^cessaire.  Les  diagrammes  suivants 
illustrent  la  mdthode. 


1 

1 

2 

3 

1 

2 

3 

4 

5 

6 

vfl^  CoNGREScj,  }    HOUSE  OF  UEPKESENTATIVES.      <  Ebpobt 
^j^ist  Scsftion.      S  i  No.  lOaV. 


; '  -V 


/o^ 


RECIPEOCAL  COMMERCIAL  RELATIONS    WlTJl    <1ANADA. 


.FUT.Y  20,  1832.— Kelerred  to  tlie  House  Calendar  aud  ordered  to  be  printed. 


Mr.  Bloi  NT,  from  tue  Committee  on  Foreign  Att'airs,  submirted  the 

following 

REPORT: 

[To  accompany  H.  If.  9324.]  * 

Tlie  Committee  on  Foreign  Atfairs,  luiving  had  under  «onsi(leration 
HoiiHe  bill  9324,  have  examined  the  snbject-matter  to  which  it  relates 
£ind  present  the  following  report ; 

Aitide  27  or  the  treaty  of  "WVliingtou  v<>"t'luded  May  8,  1871  (17 
Stat.,  872),  provides — 

The  (ioveriniieiit  of  Hor  Hrituniiic  MajeHty  engages  to  urge  upon  the  (ioveruuiieut 
of  the  Douiinion  of  (Canada  to  secure  to  the  citizens  of  the  Mr.itefl  States  the  use  of  the 
U'eUand,  St.  Lawrence,  and  other  canals  in  the  Dominion  on  terms  of  equality  with 
the  inhabitants  of  the  Dominion;  and  -lu-  (iovcrnment  of  the  United  States  engages 
tliat  the  subjects  of  Her  Britannic  Majesty  shall  enjoy  the  use  of  the  St.  Clair  Flats 
t;anal  on  terms  of  e(|uality  with  th»(  iilmi)itants  of  the  United  States,  and  further 
engages  to  urge  xi\um  the  State  governments  to  secure  to  tlie  subjects  of  Her  Britannic 
Majesty  the  use  of  the  several  State  canals  O'tnuected  with  the  navigation  of  the  lakes 
or  rivers  traversed  by  or  c(uitiguc»us  to  the  bouudary  line  bets'cen  the  possessions  of 
the  high  c(uitructing  parties  on  terms  of  e(|uality  with  the  inhabitants  of  the  United 
States. 

In  pursuance  of  the  purpo.se  and  spirit  of  this  article,  the  United 
States  permits  the  Canadian  ciizen  tlie  use  of  the  St.  Marys  Falls 
Canal  on  the  same  terms  given  to  its  own  citizens.  It  then  opens  to 
the  Canadian  <'itizen  on  the  same  terms  the  use  of  the  St.  Clair  Flats 
Canal.  The  waters  of  Lakes  Suiierior,  Huron,  and  Brie  are  thus  given 
as  a  highway  for  the  vast  scope  of  territory  lying  lu^rth  of  them  by 
which  their  produt-ts  are  enabled  to  reacli  Lake  Ontario  and  the  canals 
along  the  St.  Lawrence,  and  ever  to  the  .\tlantic  Ocean  and  the  marts 
of  the  world.  More  than  this;  ia  the  use  of  this  highway  the  .several 
sections  of  Canada  are  enabled  t<»e\«'liange  their  products  without  any 
additional  limitatiiuis.  This  tlic  i'anadian  enjoys  in  all  its  comprehen- 
siveness. 

TheWelland,  St.  H-awrence,  anil  other  canals  in  (\inada  it  was  ex- 
pected would  be  oi)en  fo  the  American  citizen  on  the  same  terms.  This 
wordd  enable  the  traffic  wlsich  <lebouciies  from  our  own  territory  inr<) 
the  Great  Lakes  to  fliul  an  outlet  into  Ontario  ports  a.id  the  Atlantic 
Ocean  on  <'<iuality  as  to  iharges  with  the  <  anadian  citizen.  The  same 
jniiu'iplc  w  ouid  ajijily  as  to  products  an<i  tonimge  on  the  retun  traffic. 
Now  let  us  see  the  action  of  the  Causwlian  autliorities.  Attention  is 
invited  to  th«' following  extract  from  Mr.  I'artridge  to  Mr.  lUaine,  dated 
April  J 4,  1892: 

Notwithstanding  tlu'  i'nll  compliance  of  this  (ioverntnent  with  the  spirit  of  the 
treaty  as  regards  Americ;iu  canals,  ami  the  liberality  of  its  ]iolicy.  which  has  opened 
them  free  of  tolls  to  Can.tdian  couvmerie,  this  Department  has  received  numerous 


RECffROCAL    COMMERCIAL    RELATIONS   WITH    CANADA. 


eoinpl.iiiits  tfiidiii^- to  sliow,  iind  wliich  it  is  bolievrd  <lo  satisfuctorily  sIkiw,  that 
tlic  I)(niiinioii  ot  (anada  lia;*  lor  Hoiiietime  diHCriiiiiiiated  a}{iiinsl  our  citizens  in  the 
use  of  lier  i-aiials. 

i'lic  lat;ts  af>  icjueKciitt'd  to  the  Deiiaitniont  art'  (substantially  as  toUows: 

Tlic  Canadian  i^ovcrnnu-nt.  in  aildition  to  vchsil  tolls,  also  inqioscs  a  cargo  toll  on 
trattic  ]iassiiig  tliioiiyli  tli(*  \\«'llaiid  and  St.  Lawrence  canaLs.  This  cargo  toll  iu 
the  case  of  wheat  and  other  cereals  amounts  to  L'O  ceJ'ts  per  ton.  For  some  years 
past,  however,  the  Canadian  .yovernnient.  by  orders  iu  conneil,  has  granted  are- 
bate  ol'  18  e(ints  per  ton  on  grain  carried  thron^h  these  .anals,  provided  it  was  car- 
ried thidugh  to  Montreal  or  some  ])ort  east  nl'  Montreal,  'i'lie  rebate  is  not  allowed 
if  the  grain  is  destine<l  for  an  American  port. 

As  boats  of  the  class  engaged  in  carrying  grain  from  the  up])er  lakes  through  the 
\Vellaiid  Canal  are  nnabh'  to  (lass  through  the  St.  Lawn  nee  cjinals  to  Montreal,  it  is 
necessary  to  transfer  cargoes  for  that  port  te  lighter-<lraft  vessels.  This  transfer 
Avas  usnally  uiad<;  at  Kingston,  Ontario,  ilirc  ■ily  Irom  the  vessel  to  the  river  barges. 
During  the  season  of  1S!(()  grain  for  .Montreal  began  to  be  transfcrri'd  at  Ogc'ensburg, 
N.  Y.,  where  there  are  large  elevators  aud  st(Ui.,ge  capacity,  Altiioiigh  the  orders  iu 
council  granting  the  rebate  were  absolute  in  terms,  tiu-  Cainidi.'in  (io\-ernmeut  at 
first  declineil  to  j>ay  the  rebate  on  grain  tran^sllipped  at  Ogdenslmrg,  and  did  not 
decide  lo  do  so  until  after  the  close  of  na\igaf  ion.  In  the  meantime  the  businessof 
transshi]))nent  at  Ogdensi.)urg  was  seriously  enibai rassed. 

To  prevent  such  tra'is8lii]iment  at  Ogdensbiug  the  Canadian  Covernnu^nt,  iu  its 
order  in  conneil,  issued  March  25,  ISitl,  ])roviding  foi'  the  nsnal  rebate  of  18  cents 
j)er  ton  on  grain  for  Montreal  and  ports  cast  during  the  seasoji  of  18!n,  inserted  a 
new  condition,  as  follows:  •' 'ri'aussliijMiie'it,  if  at  a  ChikkHuu  Intermediates  jtort, 
shall  not  ]>rinent  the  refnnd  aforesaid  )>eing  made."  .*^ince  then  no  rebate  has  Iummi 
allowe<l  (ui  grain  for  Montreal  transs!ii|)])ed  at  an  .Anu-riean  i>ort. 

On  the  tth  instant  the  Canadian  Government  isssued  a  similar  order  iu  council 
for  the  jireseut  year,  1892.  reduciug  by  rebate  the  tolls  ctu  grtiiu  carried  through  the 
Welland  and  St.  Lawrence  caniils  for  Montreal  or  pdits  east  from  L'O  cents  t((  2  cents 
per  ton.     Its  conditions  are  as  follows: 

"That  the  ](rudiicts  aforesaid  on  which  the  I'-bate  of  tolls  may  l>e  clainie<l  shall  be 
shown  to  have  lieen  originally  shipped  for  Mmitieal  oi'  foi'  some  port  east  of  Minitreal, 
and  shall  l)c  shown  to  lia\ c  been  carried  to  Montreal  or  to  somt'  i)ort  east  of  Mo  itr<'!il, 
a. ul  actually  sent  out  ^^['  the  ouintry. 

"That  the  right  to  this  rebate  shall  not  be  lost  liy  reason  of  internu'diate  transship- 
ment, ])rovi<led  tlnit  the  ]dace  o('  such  transshipment  is  out;  within  the  Dominion  of 
Canada. 

"That  the  right  to  this  rebate  shall  exttmd  to  any  portions  of  cargoes  lightered  at 
Port  Colborne  tind  reshi]i]ied  at  I'ort  I),'ilhf)usie,  and  also  to  shipments  of  the  above- 
named  products  made  Irom  any  Canit'lian  i,ake  Ontario  ]tort. 

"That  p.iymeut  of  the  amount  to  be  refunded  lie  made  from  time  to  time  as  cargoes 
of  the  said  picidncis  are  dis]iatche<l  foi'  <'Xiiorl  from  .Montreal  oi-  from  some  port  east 
of  Montreal." 

This  order  discriminates  against  our  citizens  in  at  least  three  respects: 

V 1)  In  that  it  makes  the  toll  on  graiii  for  exput  from  Montreal  and  other  Canadian 
|>orts  east  of  Montreal  2  cents  per  ton,  while  tluj  toll  on  grain  for  ex})ort  Irom  Ameri- 
can ports  is  20  cents  per  ti)n. 

(2)  In  that  even  the  lesser  rate  is  refuse<l  on  graiii  for  Montreal  and  ports  east, 
if  it  has  been  transshipped  tit  an  Aniericau  ]iort,  while  it  is  allowed  if  transshipped 
at  a  Canadian  port. 

(3)  In  that  the  2-eent  rate  only  is  levied  on  grain  for  Montreal  and  i)ort8  east  from 
any  Canadian  Lake  Ontario  port,  while  the  2(icent  rate  is  (sxacted  on  grain  for  the 
eame  destimi'ion  from  Americtm  Lake  Ontario  jtorts.  This  is  ii  new  discrinnuation 
not  contaiiied  in  the  order  of  March  25,  ISitL 

As  a  ri'snll  of  this  system  of  rebates  it  ai)peurs  from  the  otticial  canal  statistics  of 
Canada  that  during  the  season  'f  181)0,  on  228,511!  tons  of  grain  carried  through  the 
Welland  ('an;il  to  Montreal,  only  Ji^L.^TO  toll  v,as  exacted,  while  on  215,!K>2  tons  of 
grain  whieii  passed  do\\  ii  the  same  caiuil  to  Ojidensburg,  Oswego,  and  other  I'nited 
States  ]iorts  Jf-tO,  ISb  was  exacted. 

The  tarili'  of  tolls  on  coal  is  no  less  discrimi.iating.  April  11,  185)0,  the  Ctniadiaii 
Govenimeut  issued  an  order  reilnciug  the  tt)ll  m  coal  jiassing  (b»wn  the  cinal  from 
20  cents  to  10  cents ])er  tiui,  bnt  leaving  the  ful.'  toll  of  20  cents  on  coal  boniui  np  the 
camil.  According  to  the ollieial  canal  statistics  ofCanada  during  the  season  ofl8!)0, 
22,781  tons  of  coal,  |)aying  a  toll  of  10  cents  per  ton.  were  carried  down  the  canal  iu 
Canadian  vessels.  Only  (il5  t((ns  were  carried  down  in  Anu-rieiin  vessels.  Of  the 
coal  ciirried  np  the  can.il  and  coni]ielled  to  \y.\Y  a  toll  of  20  cents,  llti,61(i  tons  were 
(  arried  between  ports  of  the  I'nited  States,  17,280  from  a  I'liited  States  to  a  Cana- 
dian port,  aud  80  tons  only  iietweeu  Canadiun  jiorts.  An  ajljustmeut  of  np  and 
down  tolls  on  coal  producing  so  discriminating  results  could  hardly  have  been  un- 


RECIPROCAL    COMMERCIAL    RELATIONS    WITH    CANADA. 


intentional.  Tlio  sa  •' results  are  seen  in  flic  gcnfal  business  of  the  canals.  It  is 
alle^icil  tliat  of  tlu*  total  fai-;;o  tonnajjfo  of  tlio  U'dland  Canal  durinf;-  llic  year  1890 
57  p«'r  cent,  destined  for  American  ports,  ])ai(l  more  tlian  72  per  cent  of  its  tolls,  and 
43  per  cent,  destined  from  Canadian  iiorts,  i>ai<l  less  than  28  per  cent. 

Tlie  Department  lias  not  yet  been  aide  tooldain  a  copy  of  the  ofliiial  canal  statis- 
tics of  Canada  for  the  navi<;ation  sensfin  ol"  18!lj.  u<ir  is  it  informed  whether  they  arc 
yet  i>nt)lislie(l.  It  is  represented  to  the  1  )ei)artm',',nt.  however,  by  tlU3  Lake  Carriers' 
Association,  of  Hnlfalo,  that  the  traffic  jiassin^  thron<;h  the  \Velland  Canal  in  1S!)1 
for  0«rdensl)nrf?  alone  paid  $r)i").Uo7.0.")  toll,  while,  if  the  same  triiriie  had  heen  bound 
for  Montreal  or  ports  oast,  the  toll  would  haxc  lieen  only  $7.;>tiO.!U.  There  was  also 
!i'."),71!l.r)()  collect(Ml  on  grain  for  Montreal,  which  Avas  tr.insshijijieil  at  (»!;(lensbnrfi, 
whi(di,  if  transshipped  ;.t  a  Canadian  jiort,  would  have  only  paid  •t.')7l.9(),  niakinj^  a 
total  discrimination  in  the  use  of  tht^  U'elland  Canal  auaiust  the  business  of  thejiort 
of  ( )iidensbur>;  alone  for  the  season  of  18!fl  (d'  ^52,8L';>.71.  It  is  further  reiireaented 
th.at  its  traflic  was  conifielled  to  i)ay  the  full  toll  of  15  cents  in  the  l^t.  I.awrein  e 
canals,  while  the  Monticai  urain  traflic  jiassed  throu;^li  them  free.  It  was  also 
depri\cd  of  its  natui'al  share  of  the  business  ol'  f ransshi^ipin;;  jjrain  intended  for 
Montreal  ami  jxirts  east. 

The  Coiumissiouer  of  Navination.  in  his  annual  report  for  1H8S,  called  attention  to 
the  discrimination  of  the  Canadian  <io\erument  aj;ainst  our  citi/ens  with  respect  to 
the  navijfation  of  its  cauaN.  The  Secretary  of  the  Treasury  referr'sd  the  uuitter  to 
this  DeparMnent,  and  Mr.  Mayard  on  the  I'lst  ol'  .July,  1888,  wrote  the  British  nun- 
iKter  about  it.  The  latter,  on  the  i;!th  of  Aui^nst.  1888,  replied.  transmittini>a  copy  ' 
v»r  a  rejtort  of  the  Canadian  ]irivy  council.  Tliere  apjiears  to  have  lieen  no ^'urther 
<lil)loniatic  ('orresitondiuiee  at  that  tinu'.  (Foreijiii  Relations.  1888,  pp.  813,  814,  aud 
824.) 

Reccniiy  this  subjt^ct  was  again  ]U'esented  to  the  l)e|)artment  quite  fully  by  a 
nieniDrinl  I'rom  tins  i^akc  Carriers'  .\sso(>iatiou,  (d'  Ibitfalo.  N.  \.,  dat(!d  September 
18,  IXDl.  Since  t  len  nusniorials  have  also  been  received  from  tlie  Milwaukee  Clia'.ii- 
ber  of  Connnerce,  the  Chiiago  Board  of  Trade,  the  Detroit  Hoard  of  Trade,  the 
Cleveland  Hoard  of  Trade,  tlm  Oswego  Hoard  of  'Trade,  the  Rixdie.ster  Chamber  of 
Coninierce.  and  from  other  assooiiitions  aud  indi\  iduals. 

A  copy  of  the  memorial  (d"  the  ake  Cariiers'  Association  was  transmitted  to  Her 
Majesty's  minister  at  this  capital  October  10.  1891,  with  a  recpiest  fo  such  explana- 
tion ot  tho  fjM-t'  in  the  case  as  lu^  might  desire  to  make.  The  I  lepartnieut's  note 
stated  that  iue  matter  w.-is  one  of  special  importance  to  our  ]ieople  at  that  season, 
ami  asked  him  to  give  it  his  early  <'onsid<'ration.  Sir  .lulian  re]died.  Octobe  12, 
that  he  would  b  ing  the  matti*'  to  the  attention  of  his  (iox crunient.  At  the  confer- 
euee  which  was  ludd  at  this  l)e])artnM'ut  in  l''cl)  nary  last  with  the  liritish  minister 
and  the  oonnuissioners  from  the  Canadian  lioxernmeut  this  subjict  was  p  esented, 
aud  asRuraiici'  was  gi\t'n  by  the  Canadian  c  nninssioners  that  the  complaint  of  this 
(ilovernment  should  lia\('  proiu]>t  considerati(ai  and  that  the  <)Uestion  of  canal  tolls 
should  l>e  satisfactorily  adjusted.  Still  lu)  rejily  has  been  reocixcd  to  that  com- 
jd.iint.  but  by  its  order  in  council  of  the  4th  instant  the  Canadian  (iovernment  has 
continued  its  system  of  discrimination. 

It  dois  not  relieve  till'  ])osition  oT  the  Dominion  Government  with  respect  to  the 
grain  rebiite  that  considerable  ot'  the  grain  carried  to  Montreal  and  the  I'.ast  is 
shi])ped  from  jiorts  of  tiit>  Cnited  States,  and  that,  the  trans]untatiou  of  such  grain 
being  open  to  American  vessrds.  they  can  secure  the  rebate  on  the  same  conditions 
on  whitdi  it  is  given  to  Canadian  vessels.  'The  reci])roci>l  e(|uality  which  is  sti|>u- 
lated  for  in  the  treaty  in  the  use  of  the  Wellaud  and  uther  Canadian  lamils  is  not  to 
the  \-ess(ds  of  the  two  coinitries.  but  to  •' the  cil  izens  of  the  Cnited  States"  and  to 
"the  inhabitants  of  the  Dominion."  An  equality  in  the  u.se  of  the  canals  to  Ameri- 
can V(«ss(ds  would  not  alone  satisfy  the  conditions  of  the  treaty.  'The  distinction  be- 
tween the  vessel  ami  the  cargo  is  r<!Coguized  by  the  Canadian  (roverunujnt,  which 
exa<'ts  distinct  tolls  for  each.  Neither  does  th(^  treaty  jirovide  for  eiptality  in  tolls 
only.  The  conditions  im])osed  u])nn  the  use  of  the  canals  discriuMUJite  against  Amer- 
ican shipjiers  and  consumeis,  American  transjiortation  comi);niics  ami  routes,  and 
-Vnu'rican  jierts.  Tlu^  jtreseut  practiceof  the  Canadian  (iovernment  is  probably  even 
a  greater  discrimination  against  our  citi/ens  than  if  directed  jigainst  our  \<'ssels. 

On  the  2d  of  February  last  a  communication  was  received  from  the  lion.  N.  C. 
Hlanchard,  chairman  of  the  Connnittee  on  Rivers  aud  Harbors  of  the  Iltuise  of  ]{cp- 
resentatives,  in  which  he  said  that  his  (Minnnittee  would  Mi))>reciate  any  informatiou 
as  to  "  whether  there  is  anything  in  existing  treaties  between  (ireat  Hritain  and 
the  Cnited  States  which  wmild  prevent  the  imposition  of  tolls  by  the  Cnited  States 
upon  conum-rce  destined  for  Canadian  pcnts,  using  or  going  througii  the  St.  Clair 
Flats  Shi]>  Canal  or  the  lanal  aud  lock  .it  the  .Sault  Sie.  Marie,  in  retaliation  for 
tolls  imposed  at  the  Welland  Canal,  should  the  Government  of  the  Dmuinion  of 
Canada  tail  to  recogni/e  its  obligation  growing  out  id  the  tweuty-seveuth  article  of 
the  treaty  of  Washington." 


RECIPROCAL   COMMERCIAL    RELATIONS    WITH    CANADA. 


RE( 


Ton  replied  im  tho  latli  of  I'Vhruury  that  "the  only  trcivty  stiimlation  in  Coiooap- 
plicahlc  to  the  use  l>y  Anuirican  and  I'anadian  citizens  of  the  caiialN  connected  with 
the  (treat  Lakes  and  the  St.  Lawrence  Kiver  is  contained  in  tlie  twenty-seventh 
article  of  tlie  treaty  of  Washington  and  is  dearly  intended  to  be  reciprocal  in  char 
acler." 

At  the  .same  time  you  said  that  the  (Htmpl.iint  which  was  the  subject  of  liis  letter 
had  l)cen  "brouj^lit  to  the  attention  of  tlic  Canadian  commissioners  now  (then)  in 
this  city  and  an  assnran<'e  ^iven  by  tiiem  tliat  the  com))laint  whi(  h  wo  ha\'e  prefcned 
shnll  have  careful  and  prompt  ccmsideratioii.  with  a  view  to  a  laithful  observance  of 
the  treaty  stipulation." 

It  has  liceu  rcpeateiUy  ur;jcdupon  this  iK'iiartmeiit  by  uur  citizens  that  the  action 
of  Camida  in  this  matter  ou;;ht  to  be  met  by  retaliation  in  kin<l.  Its  recent  order 
in  council,  continuing  the  diHcriminatiou.  compfds  consideration  of  the  wisdom  of 
that  course  as  the  only  remedy  lett.  The  spirit  of  the  treaty  im]jo8es  no  otht^r  or 
ditVercjit  obligation  uimn  this  (;ov«?rnmcnt  as  regards  American  canals  than  is  im- 
posed n]»on  the  (ievernment  of  the  Dominion  as  regards  Canadian  canals;  neither 
does  the  strictest'  interpretation  of  its  language,  excejit  with  resja'ct  to  the  canal  of 
the  St.  Clair  Flats.     Copies  of  the  corrcsjiundeiicc  are  attached  hereto. 

Respectfully  submitted. 

FltANK   C.    I'ARTKIlXiK, 

Solidtor. 

Attention  is  alno  invited  to  the  following  comnninication: 

LAKK  CAItKIKKs'  A.^^SOCIATIOX, 

liiiffalo,  .V.  v.,  Siplcmher  IS,  1S91. 

Sih:  The  apprnaching  conference  between  commissioners  appointed  by  tlie  gov- 
ernment of  the  Dominion  of  Cauiula  and  re|uesentatives  of  ouj-  own  Federal  Gov- 
ernment, to  consider  llie  subject  of  recijuocMl  trade  relations  between  Canada  and 
the  United  Stat<'s,  leads  this  as.-iiciatioii,  wliicii  re])reseu1s  the  organiz«'d  vessel 
owners  of  the  (iieat  Lakes,  to  call  the  :iitenti(ui  of  the  Departuu^nt  of  State  to 
what  it  beli<'ve;!  to  be  a  ]>ersislent  and  deliiierate  xioLition  on  the  ])ai»r  of  the 
Donnnion  goxeruTuent  of  Article  XWil  of  the  treaty  between  (ire.at  Britain  and  the 
Cnited  States  wiiieli  Ix-ars  date  May  8,  1871,  nnd  is  known  ac  the  treaty  of  W'ashing- 
ton.     The  artiele  alM)\<'  referred  to  reads  as  follows: 

"The  Go\-ernmenr  of  Her  liritannic  Majesty  engages  to  urge  u])ou  the  govern- 
nu'iit  of  the  DiMuinion  of  Cana<la  to  secure  to  the  eitizens  of  the  I'niled  States  the 
n8<!  of  tile  W'elland.  St.  Lawrence,  and  other  canals  of  the  Dominion  on  tenus  of 
e<iuality  with  the  inhaldtants  of  the  Doiuiiiiiui:  mid  the  (Joveniment  <d"  the  Fnited 
States  engajies  that  the  subjects  of  I  lei-  liritannic  Majest\  shall  enjoy  the  use  of 
the  St.  Clair  Flats  Canal  on  terms  of  e(|UMlity  with  tli<-  inhabitants  of  the  I'nited 
States,  etc." 

The  tbllowing  is  a  brii'f  statement  of  the  fiicts  showing  n  violaticm  of  this  article 
on  the  part  of  the  Canadian  government  by  the  imiiosition  of  lolls  and  tlu^  institu- 
tion of  a  systt^m  of  rebates  on  the  Welland  Ciinal  which  diserimiuat<'s  against  eiti- 
zens of  the  Fnited  States  and  in  favor  of  the  inhabitants  of  the  Dominion  of  Canada: 

The  Canadi.'in  goveinment  iiujioses  <'argo  t(dlsontrafflc  ]>a8sing  through  the  Wel- 
land (\anal.  In  the  case  <d"  ;;raiu,  Hour,  feed,  etc..  these  tolls  are  20  cents  jter  ton. 
For  some  years  ])ast.  however,  the  Canarliaii  govei'iinient  has.  just  beftu-e  the  open- 
ing of  lake  navigation,  issued  an  order  in  cuiiucil  granting  a  rebate  of  18  cents  pev 
ton  of  the  tolls  on  grain  ti-atlic  passing  thnnigh  the  Wellaiitl  Ciinal,  provided  the 
grain  w.is  carried  through  to  Mmitreal  or  some  |(ort  east  of  Montreal.  As  the  class 
of  boats  engaged  in  carrying  grain  from  the  ujijicr  lakes  through  the  Welland  Canal 
is  unable  to  pass  through  the  St.  Lawrence  cjiiialsit  has  been  etistomary  to  triinsfer 
their  grain  cargoes,  when  destined  to  .Montreal,  to  lighter  draft  vessels.  This  trans- 
fer up  to  the  season  of  18!(()  was  niaile  at  tlu^  Canadian  port  ^^i'  Kingston.  During 
the  season  of  ISHO  about  Iti, ()()()  tons  of  grain  which  passed  through  the  Welland 
('anal  .ind  was  destined  lor  .Montreal  was  tiausl'erred  from  lake  vessids  to  river 
barges  at  the  port  of  Ogdensburg,  X.  V.  At  Kingston  grain  is  transferred  directly 
from  the  vessel  to  the  river  barges,  but  at  Ogdensburg.  where  there  are  large  eleva- 
tors and  stiu'age  capacity,  the  grain  was  trausfeired  th  oiigh  an  elevator. 

As  this  grain  was  chielly  destined  for  ocean  exjiort  from  .Montreal,  the  process  of 
transfer  at  Ogdensburg  had  decided  advantages  over  tiiat  at  Kingston.  The  yrain 
having  been  taken  from  the  lake  v<'ssel  into  the  ele  ator  at  Ogdensburg  c<uild  be 
stored  there  until  the  ocean  stcjuner  on  which  it  was  ■<>  In?  shi]tped  was  about  ready 
to  load  in  .Montieal.  It  conld  then  be  translerred  tv>  barges  and  rcaidi  Montreal 
just  when  it  was  needed  for  loading.  Hy  this  means  a  eonsiderabh^  expense  was 
avoided  ami  a  corisiderable  advantage  gaine<l  over  the  system  of  transfer  practiced 
at  Kingston,  wheio  the  river  barges  often  arrived  in  .Montreal  a  considerable  period 
of  time  liefore  the  ocean  steamer  at  th.it  ]iort  was  ready  to  load,  in  which  ease  the 


grain  was  he 
in  conncil  gi 
terms  and   c 
transshii»iM( 
eline<I  to  pa> 
ter  uniler  eo 
the  season. 
ferred  at  Oj. 
government' 
put  an  end  a 
forwarders  \ 
not  care  to  ; 
Oil  March 
viding  for  tl 
of  18!tl.     '11 
conditions  < 
aforesaid  i>ii 
nally  sliippt 
laiui  Canal. 
or  some  por 
port,  shall  i 
While  tilt 
ment  at  an 
interpreted 
was  to  carr 
refund  won 
been  traiisf 
this  order  i 
Slutrtly  MiK 
govermiieii 
be  paitl  lint 
what  the  ]> 
tended  to  )> 
enec  in  Oct 
could    cli''i 
above  refer 
nient  at  An 
,So  nuich 
Canal. 

Snpplomi 

canals  (a  c^ 

son  of  navi 

hcfore  set  i 

council  an 

your  depai 

at  Ottawa. 

It  may  b 

the  oi>erati 

taiued  in  t 

vear  18!)0  t 

freight,  td' 

the  same  s 

of  freight, 

that  iii  tin 

3:3«>.lUtt(U. 

tolls  exact 

rnitcd  St: 

rebate  wh 

trattic  up 

«mly  :{8,7L> 

can  vessel 

It  also  1 

carrh'd  uj 

the  coal  c 

tons  was  ( 

Canadian 

consisted 

was,  ther 

of  coal  fu 

coal,  how 


RECirKOCAL    (JOMMEHCIAL    KELATIONS    WITH    CANADA. 


cap-  ■  fjrniii  was  held  to  iiwail  the  steamer,  at  coiisideialtle  t!X])eiiise.  Altliougli  tlie  oiiler 
with  I  ill  council  yraiitiii};  rebate  on  Montreal  fjrain  IVn-  the  seaHon  of  IXyo  was  aliHoliile  iu 
■<inth  ternis  and   contaiiieil   no  iirovisioii   coiiiiiiiiiji;  the  payment  of  su<h  reliate  to  ^raiu 

cliar  traiinNliii»iM(l  at  ou<'  port  nitiier  than  another,   the  Canadian  government  at  tirnt  de- 

elined  to  pay  the  rebate  on  the  >j;rain  transHhijiiied  at  <)y,(leimlmrn,  hut  took  theniat- 
etter  ter  niider  consideiation  and  made  no  decision  until  about  the  cloHe  of  iiaviffation  for 

n)  iu  the  season.     It  was  then  decided   that  the  rebate  iiniHt  be  paid  on  the  ;iraiii  liaiis- 

rrod  I'erred  at  <  >ji;(h'n8l»nrj;,  and  such  payment  was  made.     The  effect,   however,  of  the 

M'e  of  governuient's  action  in  witliholdinff  its  decision  until  the  close  of  iiavij^ation  was  to 

l>ntaii  end  almost  entirely  to  the  traii8Hliii;ment  of  j;rain  at  (>j;densl»iiii;,  because  the 
•tiou  forwarders  were  nnceitain  as  to  whetiier  they  would  ^ct  their  i-<d>;ite  or  not,  and  did 

•rder  not  care  to  assume  the  risk  of  an  unfavorable  deciHinii  by  the  (Jaimdian  authorities, 

•m  of  On  March  2ii,  IHJtl.  the  ('ana<lian  jioveniiiieiit    issued  a    new  order  in  coninil,  ]iro- 

er  or  vidinji'  for  llie  iisiial  rebate  of  lf<  cents  ]>cr  ton  on  Montreal  j^rain  during  the  season 

ini-  of  18!M.     This  order,  howe\er,  ditfeied    from   ordi'rs   made   in   former  years,  and  tlie 

ither  ..  conditions  of  the  rcliate  jire  slated  in  the  order  as  loilows:  "First,  the  |iid(liicts 
al  of  M  aforesaid  on  which  the  refiiml  may  he  claimed  siiall  lie  shown  to  have  been  origi- 
nally shipped  from  Montreal  or  some  port  east  of  Montreal  betbre  entering  the  Wel- 
laiid  Canal.  Second,  they  shall  lie  shown  to  have  licen  actually  carried  to  Montreal 
or  some  ]iort  east  of  Montreal.  Third,  traiissiiipnient.  if  at  a  C'anadian  intermediate- 
port,  shall  not  prevent  l-lu^  refund  atbrcsaid  being  made." 

While  the  tliii'd  condition  above  stated  docs  init  state  iiiic(|iii\  ocally  that  transship- 
ment at  an  American  intermediate  port  will  prevent  the  refund,  it  is  generally  so 
interpreted,  'i'lnre  lan  be  no  doubt  that  the  intention  inwiirding  this  (oiiditioii 
was  to  carry  the  impression  that  on  .Montreal  grain  traiislcrred  at  <  )gdcnsliurg  the 
refund  woiihl  not  be  ]iiiid.  As  a  matter  of  fact  a  lew  ciP'goes  ot'  Montreal  grain  have 
been  transferred  at  ( >gdeiisb,irg  during  the  jireseiit  year,  for  the  purpose  ot  testing 
this  order  in  cijuncil.  and  in  each  case  a  demand  for  a  refuinl  has  been  refiiseil. 
.Shortly  after  the  lirsf  of  these  cargoes  was  transferred  at  Ogdeiisbiirg  the  Canadian 
government  issued  an  order  that  no  rebated  bills  under  tiie  cu-der  in  council  would 
lie  paid  until  the  close  of  navigation.  It  is,  of  course,  imnossible  to  say  absolutely 
what  the  ]r.irpose  of  this  last  order  was.  but  it  seems  (|nite  likely  that  it  was  in- 
tended to  ]>ostponi'  detinite  action  in  this  matter  until  after  the  reciprocity  coufei- 
euce  in  October,  so  that  at  the  time  of  siu-li  conference  the  C'anadian  eoniniissioners 
<'ould  clii'iii  that,  in  .spite  of  the  worvling  of  conditi<in  I!  .of  the  order  in  council 
above  referred  to,  mo  actual  discrimination  had  yet  been  iiuide  between  transship- 
ment at  .\meri('au  and  Canadian  ports. 

So  much  for  the  facts  relating  to  rebates  on  graiu  pa.ssing  through  the  Welland 
Canal. 

Siipiileinent  No.  1  to  tlu^  annual  report  of  the  Canadian  minister  of  railways  ;uiil 
canals  (a  copy  of  which  is  -cut  hercwithj  contains  the  canal  statistics  for  tin-  sea- 
son of  navigation  of  1890.  In  it  will  be  found  a  veritication  of  all  the  facts  liercin- 
hefore  set  fortli  rcdating  to  th<'  year  i8f)0.  The  statements  relating  to  the  order  in 
council  and  the  course  of  proceeding  for  the  year  18111  can  be  easily  verified  by 
your  de]iartment  through  the  United  States  consul  at  Prescott  or  the  consul-general 
at  Ottawa. 

It  may  be  well  to  iKiint  out  certain  other  facts  drawn  from  the  ofticial  re]iort  of 
the  oiierations  of  the  Well.ind  (':inal  for  the  season  of  navigation  of  ISitO,  as  c<in- 
taincd  in  the  supphMiient  aliove  r(;ferred  to.  I'roni  that  rcjiort  it  aiipears  tliat  iii  the 
year  ISftO  there  passed  down  the  \\elland  Canal  to  Canadian  jiorts  ;>()3,8;>!)  tons  <if 
freight,  of  which  212.080  obtained  a  renate  of  nine-tenths  of  the  canal  tolls.  During 
the  same  season  there  passed  <lown  the  canal  to  the  I'nited  States  ports  !:{27,n;W  tons 
of  freight,  of  which  only  lti,i;W  tons  obtained  any  rebate  whatever.  It  also  appears 
that  in  the  year  18it0  tliere  ]iassed  down  the  Wellainl  Canal  in  Canadian  vessels 
l32t).U9tot.s Of  freight,  of  which  181,275  tons  obtained  a  rebates  of  niue-tontha  of  the 
tolls  exacted  at  the  canal.  During  the  same  season  there  jiassed  down  the  canal  in 
I'nited  States  vessels  ;U)2.477  tons  of  freight,  of  which  (Uily  .")2.4ri(t  tons  obtained  any 
rebiit*'  wh.'itever.  On  trallic  up  the  canal  no  reliates  of  tolls  were  paid,  but  of  smdi 
tratlic  up  the  canal  in  the  year  1890,  251.312  tons  was  bound  to  Aniciican  pints  and 
only  38,724  tons  to  Canadian  ports.  (»f  this  trallic  210. 720  tons  was  carried  iu  Ameri- 
can \essels  and  only  72.340  tons   in  Canadian  vcssids. 

It  also  aii]icars  ii'i  the  rejiort  that  during  the  year  1800  178,088  tons  of  coal  was 
carried  up  ;.nd  23.390  tons  of  coal  was  carried  down  through  the  Welland  Canal.  Of 
the  c(>al  carried  up  101,010  tens  was  carried  between  jiorts  of  the  riiited  States,  92 
tons  was  carried  between  Canadian  ports,  .and  17,280  tons  from  ,i  I'liited  States  to  a 
Canadian  jiort.  It  will  thus  be  seen  that  the  up  tratlic  iu  coal  through 'he  canal 
consisted  almost  entirely  of  a  movement  in  the  riiited  States  coastwise  trade,  and 
was,  therefore,  necessarily  carried  in  Cnited  States  vessels.  On  this  uji  movement 
of  coal  full  tolls  of  20  jier  lent  per  ton  were  exacted.  Of  the  down  movement  of 
coal,  however,  22,781   tons  was  earrie<l  to  CanadJaja  ports,  and  a.11  of  thjm  was  car- 


r> 


Ki:<'II'ROCAI.    COMMERCIAL    RELATIONS    WITH    CANADA. 


i-it^l  ill  C;iii;i(liaii  vessels.  Only  615  tons  of  coal  was  eariied  down  tiiroiijili  the  canal 
in  ill!  Aiiieiitaii  vessul  or  to  an  .\nierican  port.  On  tiie  l.th  ol"  Ainil,  1H90,  the 
Doiiiiiiinii  (iovcninient  issiiod  an  order  itMliiciii;;-  the  toll  on  enal  paHsiiii;- down  tlu^ 
canal  Iroiii  L'O  cents  to  10  cents  jier  ton,  but  iea\  inj>  (he  I'iill  toll  of  20  cents  on  coal 
lioinid  n|.i  (lie  canal. 

It  also  a|i))ears  Croiii  this  ol'lieial  rejiort  that  of  the  Montreal  jirain  transferred  at 
Kingston  during  the  season  of  IS90  1SL1'7">  Ions  was  carried  to  Kiii;istoii  in  Canadian 
ves>el-<  and  li"),."!!)!)  tons  in  \essels  of  the  liiitcd  States. 

The  Lake  Carriers'  Association  helievcs  that  tiie  facts  hereinlitdnre  set  forth  show 
rery  jdainly  a  violation  hy  the  Dominion  (iovernineiit  l>oth  of  the  spirit  and  letter 
of  the  twenty-seventh  article  of  the  treaty  of  \Vasiiin;j-ton.  for  the  following'  reasons: 

First,  flic  <'tfect  of  the  reiiates  on  .Montreal  j^rain  is  to  allow  practically  all  the 
jjraiii  which  ])asses  thronj;h  the  ^Ve]lau<l  Canal  liunnil  for  Canadian  jKH'ts  to  go 
throuiih  at  a  toll  of  only  '2  cents  per  ton,  while  the  <i'rain  which  i>asses  the  canal 
iioimd  fi)i  I'liiti'd  Stiites  ports  is  ()l)li;ied  to  ])ay  a  toll  ten  times  as j^reat.  It  is  under- 
stood that  the  Dominion  ( Jo\-ernnient  claims  that  the  tie!,(,\  is  not  herel)y  violated 
hccans  •  the  .i;rain  carried  to  Canadian  ports  is  shijiped  from  ])orts  of  the  United 
States;  that  therefore  the  cairia;;t^  of  such  ;irain  is  open  hotii  to  American  and 
Canadian  vessels,  and  that  the  rcliate  is  jiaid  alike  to  the  vessels  of  tiotli  countries. 
Therefore  they  claim  that  the  use  of  the  W'elland  (anal  is^rivcn  to  Canadian  and 
Cnited  States  vess(ds  on  e(nial  terms.  It  is  to  he  noted.  how<'\('r,  that  the  twenty- 
seventh  article  of  the  treaty  of  W'ashinjiton  secures  the  eipial  use  of  the  canal  not 
only  to  American  and  ( 'anadian  vessels,  hut  to  the  citizens  of  the  two  countries.  The 
])iiipose  anil  intent  of  that  article  is  (dearly  to  prevent  tiu^  Canadian  Covernnieut, 
hy  the  use  of  vexations  canal  rejjiilations  or  hy  any  <levice  of  discriminating  tolls, 
rehates,  or  refunds,  from  giviii<>  to  their  own  vessels  or  to  their  own  ports,  or  to  their 
<)"vn  eonsnmers  or  citi/eiis,  any  ad\aiitage  over  .Vmerican  vesstds  or  .\merican  ports 
or  American  consniners  or  citi/.ens.  If  the  intent  of  the  treaty  h;id  liceii  simply  to 
secure  t .)  \  ess(ds  of  the  t  wo  countries  eqnal  rij;lits  in  t  he  canal,  sncdi  intention  would 
have  found  its  natural  expression  liy  iisinji;  the  word  ••vessels"  in  the  arti(de.  It  is 
clear  that  the  intent  of  tlie  article  is  to  cover  a  Itroadcr  ;;i'ouiid  and  to  secure  the 
use  of  the  caaal  on  etpuil  terms  not  only  for  American  vessels,  Init  for  Am<;iican  ports, 
consniners.  and  hiisiuess  interests.  The  grain  rehates  are,  therefine,  in  clear  viola- 
tion of  the  treat  •. 

When  an  American  vessel  loaded  with  urain  for  an  .\ineriean  port  passes  the  Wel- 
laiul  Canal,  hy  what  citizens  of  the  I'liited  States  is  tlie  canal  used?  Is  it  init  used 
as  well  by  tin-  owners  or  cousij^nees  of  the  ear^o  as  by  the  owners  or  charterers  of 
the  vessel  '  Manifestly  it  is  used  by  both,  and  the  Canadian  (Hiviunmeiit  distinctly 
reeo<;ni/es  this  t'act  by  cxactinj;'  tolls  from  both.  On  every  steam  vessel  passinjj  the 
canal  a  toll  of  1.1  cents  ])er  re;;istered  ton,  and  on  (^very  sailing;  ^•es.■sel  a  toll  of  2| 
cents  per  re.nisti'red  ton  is  collect(!d.  In  addition  to  these  vessel  tolls,  tolls  are  ex- 
acted on  the  earico,  and  it  is  on  these  car;;o  tolls  that  (liscrimination  is  made. 
^^'hen  two  \essels  loaded  with  urain  .arrive  at  the  canal  tojicther,  one  cai'ji'o  destined 
for  Ojideiisbiir!;-  or  Oswego,  and  the  other  destined  for  Montreal,  and  the  Canadian 
government  exacts  a  toll  ton  times  as  great  on  the  caigo  destined  tor  the  I'liited 
States  ])ort  as  on  the  cargo  destined  for  the  Canadian  jiorf,  it  is  clear  that  the  use  of 
the  canal  is  not  secured  on  e(|nal  terms  for  the  I'itizcMis  of  both  countries.  On  the 
princi]»al  <'ommodity  ))assing  the  canal  there  is  an  audacious  discriininatiou  against 
American  forwarders,  ]»orts,  consumers,  and  routes  of  ex])(>rt  and  in  favor  of  Canadian 
forwarders,  ports,  consniners,  and  loiitis  of  cxjiort.  lit  the  year  1800,  on  228,51!{ 
t(uis  of  grain  carried  through  thi'  Welland  Canal  to  .Montreal,  only  ti!!, 570  tolls  was 
exacted,  while  on  215.1132  tons  of  grain  which  jiasscMl  <lown  the  canal  to  Ogdens- 
bni-g,  ( >8wego,  and  other  Cuited  States  jiorts  .'J'l!t,18(>  was  exacted,  Surtdy  this  is 
not  giving  the  use  of  the  canal  on  e(|iial  terms  to  inhabitants  (d'  the  Dominion  and 
citizens  of  the  Cuited  States.  .\  careful  study  of  the  otticial  citnal  statistics  for  the 
year  18!H)  shows  that  the  Dominion  goverejaent  collected  on  the  Welland  Canal  over 
and  above  all  refunds  cargo  tolls  to  the  aiuonnt  of  ■i<lIU,()l)it,  and  that  of  these  tcdis 
cargo  destined  l\>v  .Vmerican  ports  paiii  ^!t7,IM)(land  cargo  destined  for  Canadian  jiorts 
only  .^87. 1)00,  Of  the  total  cargo  tonnage  of  the  canal  .")7  per  ("■lit  destined  for  .\m(U- 
ican  ports  paid  more  than  72  jier  cent  of  the  tolls;  ll!  per  cent  destined  for  Canadian 
ports  paid  less  than  2S  ])er  cent  of  the  tidls.  With  only  one  third  iiKU'c  cargo  than 
Canada  we  paid  nearly  three  times  as  much  in  cargo  tolls. 

Mention  has  already  been  made  of  the  ditference  in  the  rates  of  toll  on  west-boniid 
and  east-bound  coal,  and  in  the  statement  of  facts  above  given  it  is  shown  tliat  on 
this  article  as  w<dl  as  on  giain  there  is  a  clear  discrimination  against  citizens  of  the 
L'nited  States.  The  west-bound  co.al  is  nearly  all  carried  between  United  States 
ports,  and  therefore  necessiirily  on  American  vesscds.  Twenty  cents  a  ton  is  exacted 
on  this  tratitic.  The  same  commodity  when  carried  through  the  canal  east-bound  is 
nearly  all  carried  to  Canadian  ports  ;ind  on  Canadian  vessels.  Hy  an  order  in  coun- 
cil made  last  year  only  10  cents  a  ton  is  exacted  thereon, 

Sec(md.  There  is  the  clearest  possible  c'lse  of  discrimination  against  citizens  of 


RECIPROCAL    COM.MKRCIAI.    RI.I.ATIOXS    WITH    CANADA. 


ihf  riiitcd  Stiilcs  ill  the  tliird  •■(luditioii  !itt;iilu!  !  fo  the  icrmnl  nf  jiiniii  tcills  as  such 
(■•iiiditioii  apiifMVS  in  tlic  order  in  (•(nincil  juiitiitin  surli  rciV.iids  (or  the  vcar  IMHI. 
Tliat  (•(inditiiin  iiiiplics,  in  tlio  phui.cst  )iiissitdc  inamicr,  tliat  iiiiic-ti'iitlis  of  tl 
^raiii   lolls  will   lie  I'll'iiiidiMl  on  .Monti 


10 


ji'idii  ill  >''i^f  siicii  <;i'aiu  is  tiaii,>('cnfd  at 
Kiiifistoii,  liiil  (liat  11"  siicli  icfiiiid  will  he  made  it'  smli  iranslVr  is  made  al  O^tdeiis- 
l)iir<j;.      Iftlie  Canadian  (iovernmeiit  elaiiiis  that  no  rel'unds  \N-hatever  are  now  lieinjr 
made,  that  tlie  whole  siilijeet  will  lio  taken  ii]i  al  llie  close  of  ilic  season  of  iia\i;ia- 
tioii.  and  tliat  rel'nnds  on  jirain   transferred  at  ( •<;deiishiir;;  ha\e  not  yet  heen  ileti- 
nilely  re.fiistMl,  it  is  siilhcieiit  to  siiy  that  the  el -ar  and  iieecsHaiy  etVect  of  this  condi- 
tion  in    the  ordi-r  in   <-oiiiicii   is  tn  drive  the    iiiMness  away   IVoiii   the  <  )^(leiisliiirj^ 
route.     So  lonjj  as  a  coinlition  thus  expressed  iip])ears  in  the  onler  in  council  j;rant- 
ing  f;raiu  refunds,  no  forwarder  of  j^raiii  can  prudently  transship  it  at  Osdenslmrg. 
Tiiird.  The  system  of  f(dls  now    in   iisi;   in  the  WcUaiid  Canal  is  a  discriminaliou 
against  American  vessels  as  wtdl  as  against  American  jiorts,  consumers,  routes  of 
export,  and  forwarders.      My  conlininjt  the  ;;raiitin<'-  of  ^jraiii  refunds  to  grain  trans- 
slii])ped  at  Kingstun.  the  Canadian  ("'ipv  ii  nnieiit  tiins  excludes  Irom  the  o]icra(ion  id' 
the  refund  order  the  regularly  nrgani/ed  liiiesot"  .\niericaii  \    ssels  runnii.g  to  ( );^ ileus 
liurg.      It   coiitines   the   Itenelits  of  the  order  in    council  to  .American   \ cssids   whiidi 


ay  run  to  a  certain  Canadian  jmrt;  and  while  th 


M 


outre 


il  ur 


nil  IS  sliip]ied  trum 


ports  of  the  riiited  States,  and  lor  that  reason  its  carriafic  tVoni  such  poitsto  Kings- 


ton IS  open  to  \ cssels 


if  the  Ciiitcd  Stiiti 


a  ni.itter  of  fact  this  line  of  th 


trade  is  in  the  hands  of  Canadian  vessels.     We  have  seen  also  that    in  tin 


e  cai ry- 
east- 


iind 


coal  traftic  through  the  canal,  w  here  such  traffic  is  almost  cntiieh'  carried  in 


Canadian  vessels,  a  toll  is  exacted  only  one-half  as  gieat  as  in  the  ease  of  the  west- 
bound tratlic  in  the  siinie  commodity,  sneh  west-hound  traftic  heing  iilniost  fiiitirely 
Inited  .states  coastwise  trade  an<l  therefore  nec^isarily  in  the  hands  of  .\nicriian 
vessids.  We  snliniit  that  it  is  not  giving  the  use  ol'  the  W'cllaiid  Canal  to  I'nitetl 
States  vessels  on  terms  of  ei|uality  with  those  of  the  llomiuioii  tosehci  lines  of  trade 
whiidi  are  in  the  hands  of  I'liited  States  vessids,  and  in  such  cases  to  exai  t  full  cargo 
lolls  while  granting  greatl>'  reduced  rates  <d' cargo  tolls  in  lines  id' trade  which  are, 
as  a  matter  of  fact,  in  the  hands  of  Canailiau  vessels. 

Melieving  that  the  facts  and  reasons  above  given  slncv  a  clear  violation  by  the 
Canadian  (ioxerTiiuent  of  the  treaty  oblig.itions  entered  into  by  (Ireat  llrifain  on  its 
behalf,  wo  have  thought  this  a  most  ojiiiortnne  time  for  bringing  the  whole  subject 
to  the  attention  of  your  Hepartineiit.  In  a  few  weeks  the  conunissioners  appointed 
l>y  the  I  (ominion  (iovernmeiit  will  visit  Washington  for  the  express  purpose  of  emi- 
ferring  with  rt^iiresentatives  of  fhe  I'nited  States  on  the  recijnocal  trader  lelatioTis 
of  the  two  countries.  A  favorable  o|']iortuiiity  will  thus  be  afforded  for  hringiug 
this  matter  formally  to  the  attention  of  tin-  Dominion  (iovernment  and  for  deniauil- 
ing  that  heiicelorih  the  Welland  Canal  shall  hi-  open  for  business  to  citi/cns  of  tlie- 
Ciiited  States  on  terms  of  equality  with  the  iiilialiit'iiils  ot'  the  Dominion,  without 
discrimination  against  either  .\iiiericaii  ports,  coiismners,  forwarders,  or  vessels. 
Should  the  Canadian  (iovernment  not  grant    redress  and  should  it  continue  to  hold 


that  the  regulations 


in   force  are  no  violation  of  the   treaty,  then    the    I'nited 


States  (iovernment  would  certainly  be  free  to  place  upon  the  treat\  the  same  con- 
struction ]daced  iijion  it  by  the  (.'anadian  (iovernment. 

It  could,  tliercfore,  )dace  in  force  ii|)ou  the  St.  Clair  Mats  Canal  and  the  St. 
Marys  Falls  Canal  a  system  of  tolls  which  would  operate  against  Carndian  vessels 
and  ports  just  as  the  \\'elland  (^aiial  tolls  operate  against  our  own. 


Sujipose  thei  rniteii  States  should  put  in 


regulations  whereliy  all 


■esHids  pass- 


ing the  St.  Clair  Fl.its  C.inal  or  St.  Marys  Falls  Canal  bound  for  any  iiort  of  the 
I'nited  States  should  be  allowed  lo  ])ass  w  itliout  pa.\  iiig  lolls  w  hilc  high  cargo  tolls 
were  exacted  from  all  vessels  passing  these  canals  bound  for  any  Canadian  port. 
Such  regulations  could  certainly  not  lie  coniidaiued  ot'  Ity  the  ( 'anadian  ( io\  crument. 
If  it  were  found  as  a  matter  of  fact  that  an>  ]>arlicular  commodity  carried  to  any 
Can 
a  trai 


adiaii  ports  through  these  canals  was  usually  carried  in  .Viiiciican  \esscls,  or  wa> 
liiidi  the  business  interests  of  ,  he  I'nited  States  were  deri\iug  beiielit, 


le  fi 

then  such  coiiiinodity  might  lie  exem))teil  from  the  payment  of  tolls,  just  as  .Montreal 
grain  and  east-liomid  coal  are  ]iartly  exeiiipted  on  the  W'ldla'id  Canal,  leaving,  how- 
ever, all  Canadian  coastwise  luisiiiess  through  these  canals  and  all  biisiiu'ss  through 
these  canals  bound  to  Canadian  ports  and  usually  carried  in  Canadian  \  cssels  .subject 
to  such  heavy  tolls. 

Simple  justice  to  Ameriean  forwarders  and  vessel-owners  rei|uires  that  on  grain 
lioiind  for  Montreal  the  same  tolls  should  lie  exacted  at  the  St.  (/lair  Flats  ( 'anal  tliat 
are  now  exacted  at  the  Wellai.d  Canal  on  grain  destiiied  foi-  ports  of  the  I'nited 
Slati's. 


Vovy  resjieetfiilly  y<Mirs, 


Hon.  .Ia.mes  G.  Mi..\im:, 

iSecn'tarji  of  State,  IVashingtoii  D,  C. 


LaIvE  Cai!i:ik.I!s'  A.-^smiA'iiox, 
I'cr  C.  11.  Kkki',  Hecretary. 


8 


KKCirUOCAL    COMMERCIAL    RELATIONS    WITH   CANADA. 


All  cttoitH  to  Hcmre  a  Just  int«  r]>n't.'ition  of  the  tioaty  riK'htH  of 
AiiMMiciMi  ('iti/«'iis  li}iv«i  luM'ii  met  in  a  spirit  of  evasion,  avoidanre,  and 
delay.  Such  conduct  is  not  only  lislioncst  in  |>Mii>osc  and  deceitful  in 
uu'thod,  but  almost  reaches  to  tlie  |.oint  of  <-ontuniely  and  insult. 

It  aiMM'ars  tliat  a  power  should  be  vested  in  the  President  of  the 
United  States  to  so  regulate  tolls  on  the  St.  Marys  Falls  (3aual  as  to 
secure  to  Auieriean  citizens  their  rights  as  herein  set  forth. 

ihe  acconii>unying  bill  is  therefore  reported  w  ith  a  recoiuineiulatiou 
that  it  do  pass. 


l.'W 


■-■t  ■  '■■ 


»  of 
uul 
I  ill 

the 
<  to 

:iou 


